340B Terminology

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340B Ceiling Pricing
This is the government mandated maximum price at which wholesalers are able to sell drugs to 340B entities.

340B Contract Pharmacy
This is a retail pharmacy that has a contract with a covered entity to dispense 340B drugs to the covered entity’s outpatients.

Diversion
This is the unlawful use of 340B drugs in filling prescriptions of non 340B eligible patients.

DSH
A Disproportionate Share Hospital is a hospital who serves a large percentage of indigent patients.

Duplicate Discount
This is the unlawful claiming of multiple discounts for one drug (claiming Medicare and 340B discounts on the same drug order).

FQHC
Federally Qualified Health Centers are health centers that receive reimbursement from the government to serve an underserved community and meet a set of requirements that can be found here.

Health Care Safety Net
This is a system of care for the large number of low-income Americans who have limited to no health insurance. This system is used to provide these people with care as well as people who

Outpatient
This is a patient who is not hospitalized but has received care/a prescription pursuant to a walk-in visit from a special health care provider.

On-Site Pharmacy
On-site Pharmacy is a term used to refer to a pharmacy that is located on the property and a part of a hospital, clinic, or health center.